KKR consortium buys GE’s Australia consumer finance unit

Although the size of the investment has not been disclosed, it is likely one of the biggest private equity transactions ever seen in Australia. In recent years, infrastructure has dominated the deal standings, with large-scale privatizations including Port Botany & Kembla and Queensland Motorways.

The GE business has more than three million customers and works with many major retailers, offering a range of products and services such as personal loans, credit cards and interest-free retail finance. Other bidders for the asset included Apollo Global Management, Macquarie Group and a consortium led by TPG Capital, according to media reports.

"GE Capital is one the most respected providers of consumer finance in Australasia. They are led by a strong management team with an outstanding track record of partnering with leading retailers," said Ed Bostock, a director at KKR, in a statement.

General Electric has been divesting consumer finance assets as it looks to focus on industrial businesses, with a view to reducing the financial services share of revenues to 25% from 42% last year.

Geoff Culbert, president and CEO of GE Australia & New Zealand, added in the statement that the company would concentrate on becoming a leader in infrastructure technology. The strategy includes a specialty commercial financial services business, which will work with customers in oil and gas, energy, healthcare, aviation and mining.

Värde is a global alternatives investment firm with $10 billion under management. Areas of focus include real estate, corporate credit, residential mortgages, specialty finance, transportation and infrastructure.

KKR is making the investment from its second pan-Asian private equity fund, which closed in 2013 at $6 billion.

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• Topics
• Buyouts
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• Australasia
• Financial Services
• KKR
• Deutsche Bank
• buyout
• Australia
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